A Community-Wide Approach to Using Leapfrog Hospital Insights in Memphis

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1 A Community-Wide Approach to Using Leapfrog Hospital Insights in Memphis Cristie Upshaw Travis CEO, February 14-15, 2007

2 Questions to Answer Why Leapfrog Hospital Insights TM? Is Memphis ready? How will we implement? Why a community approach? What questions do you have?

3 Why Leapfrog Hospital Insights? Key Evolutionary Steps High Enabled by IT Quality Value of Health Expenditures Transparency Performance Comparisons for Hospitals, MDs & Tx Incentives and Rewards Market Sensitivity to Hospital/MD Quality & Cost Clinical Reengineering by MDs, Hospitals & Suppliers Costs Low Adapted from The Disclosure Group Adapted from the Disclosure Group

4 Transparency in Memphis 1987: Quality reporting in group purchase contract Transparency Performance Comparisons for Hospitals, MDs & Tx 1994: New mission explicit re: effectiveness & efficiency 1997: Philosophy statement explicit re: Provider accountability for cost & quality Needs & desires of purchasers & users drive the system Purchaser & user right to information 1998: First hospital & health plan report cards 2002: Joined The Leapfrog Group & implemented hospital quality & safety survey 2003: 100% hospital reporting on Leapfrog; progress in Hospitals meeting the leaps

5 Why Leapfrog Hospital Insights TM? Considers both effectiveness & efficiency Meets both M mission provisions Clear opportunity for improvement History told us something had to be done Extension of existing transparency initiative Builds on hospital-based focus Builds on Leapfrog survey & JCAHO core measures Expansion of existing transparency initiative Adds more clinical & efficiency information in public database

6 Leapt early M s role Serve as a catalyst Participate in program inception & design Recruit key players M Pilot Project Employers Educate on incentives & rewards programs Educate on performance measurement systems Recruit champions Hospitals Educate on national approaches to incentives & rewards Educate on LHI specifics Recruit early adopters Model participation Health Plans Coordinate & collaborate for shared members Explore incentive program design Is Memphis Ready? Pilot Project

7 How Will We Implement? Moving past the Pilot Concept Common, community-wide performance measurement set for hospitals Health plans use results to establish plan-specific incentive & reward programs with hospitals Health plans share license fees through sub-license with M M represent program publicly & serve as liaison between & among plans and hospitals Recruitment Health Plans Early discussions very positive Hospitals Initial discussions with other hospitals very positive

8 CIGNA s Perspective

9 Why a Community Approach? Collaborate to incent significant improvement All hospitals focus on same clinical conditions All hospitals focus on both clinical improvement & increases in efficiency Reduce the noise Focus on improvement, not justification Compete on use of data, not data itself Reduce data collection & analysis requirements For hospitals: one set of measures to report on to all health plans Share program implementation costs Partner with the business community

10 But, Are There Challenges? Of Course Health plan investment in proprietary measurement systems Approval processes at multiple plans, multiple hospitals Anxiety over broad access to information Coordination & timing

11 What Questions Do You Have?

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